-Company Reports Profitable Operations and
Further Strengthening of Balance Sheet-
The Marygold Companies, Inc. (“Marygold” or the “Company”) (NYSE
American: MGLD) (formerly Concierge Technologies, Inc.), a
diversified global holding firm, today reported financial results
for the fiscal year ended June 30, 2022.
Net revenues for the 2022 fiscal year amounted to $37.8 million,
compared with $39.9 million for the fiscal year ended 2021. Net
income for the 2022 fiscal year was $1.1 million, equal to $0.03
per share, versus $5.8 million, equal to $0.15 per share, for the
fiscal year ended 2021.
For the fourth quarter ended June 30, 2022, revenues were $9.9
million, compared with $9.7 million for the same period last year.
Net income for the most recent fourth quarter was $1.1 million,
equal to $.03 per share, as compared to $0.7 million for the prior
year.
During the year ended June 30, 2022, the Company’s cash position
and net income were negatively impacted by an aggregate of $5.7
million in expenses in connection with a cash payment of $2.5
million in the first fiscal quarter related to a legal settlement,
and by an additional $3.2 million expensed during the year toward
completion of the Marygold & Co. (a wholly owned subsidiary of
the Company) fintech mobile banking app.
The Company’s balance sheet remained strong at June 30, 2022,
with total assets increasing to $35.3 million from $31.5 million at
the end of the prior fiscal year. Total stockholders’ equity rose
to $29.0 million at June 30, 2022, from $25.3 million a year ago.
Cash and cash equivalents at the 2022 fiscal year-end amounted to
$12.9 million, compared with $16.0 million at June 30, 2021, with
the decline attributed to the aforementioned legal settlement
expenses and product development costs. The Company ended the year
essentially debt-free, after having paid its remaining
related-party debt and interest of approximately $740,000 during
the last quarter.
Revenues at the Company’s principal subsidiary, USCF
Investments, were $1.3 million lower during fiscal 2022 compared
with the prior year because of lower average assets under
management (“AUM”). For fiscal 2022, AUM averaged $4.4 billion,
compared with $4.9 billion in fiscal 2021.
The Marygold Companies’ other principal operating subsidiaries -
Gourmet Foods, Brigadier Security Systems and Original Sprout - all
were profitable but suffered shrinking margins, averaging
approximately 18% below those of fiscal 2021, due primarily to the
lingering impact of the COVID-19 pandemic, along with the effects
of inflationary pressures, higher costs of raw materials, shipping
and labor costs. Fiscal 2022 revenues for this group overall were
off by approximately 5% from the revenues of fiscal 2021.
Management expects this trend to be reversing as the global economy
rebounds from the pandemic effects in the coming fiscal year.
“From a corporate development and operating perspective,
excellent foundational progress was made in fiscal 2022 to position
the Company for the future,” said David Neibert, Chief Operations
Officer of The Marygold Companies. “Among key accomplishments were
the formation of a wholly owned subsidiary, Marygold & Co. (UK)
Limited, which, in June 2022 acquired Tiger Financial & Asset
Management Limited for approximately $2.9 million, an established
and certified investment advisor in the U.K. Also during the fiscal
year, the Company’s securities were up listed to the New York
American Stock Exchange, and we changed our corporate name to align
with our Marygold & Co. subsidiary, which is currently beta
testing its proprietary consumer fintech app for sending,
receiving, spending and saving securely through mobile
devices.”
Nicholas Gerber, Chief Executive Officer, said, “I am proud of
our talented, hard-working team, which enabled the Company to
maintain profitability and accomplish so much in a challenging
external economic environment. We achieved many corporate
objectives during the past year in keeping with our overarching
goal of building a diversified, profitable and stable corporation
that provides long-term value for our shareholders.”
Business Units
The Company’s USCF Investments subsidiary,
www.uscfinvestments.com, acquired in December 2016 and based in
Walnut Creek, Calif., serves as manager, operator or investment
adviser to 12 exchange traded products, structured as limited
partnerships or investment trusts that issue shares trading on the
NYSE Arca.
Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in
August 2015, is a commercial-scale bakery that produces and
distributes iconic meat pies and pastries throughout New Zealand
under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by
Gourmet Foods in July 2020, Printstock Products Limited,
https://www.printstocknz.com/, is a printer of specialized food
wrappers and is located in Napier, New Zealand. Its operations are
consolidated with those of Gourmet Foods.
Brigadier Security Systems, www.brigadiersecurity.com, acquired
in June 2016 and headquartered in Saskatoon, Canada, provides
comprehensive security solutions to homes and businesses,
government offices, schools and other public buildings throughout
the province under the brands Brigadier Security Systems in
Saskatoon and Elite Security in Regina, Canada.
Acquired at the end of 2017, San Clemente, Calif.-based Original
Sprout, www.originalsprout.com, produces and distributes a full
line of vegan, safe, non-toxic hair and skin care products,
including a “reef safe” sun screen, in the U.S. and its
territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan,
Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand,
Australia and Canada among other areas.
Marygold & Co., formed in the U.S. during 2019 and operating
from offices in Denver, CO, together with its wholly owned
subsidiary, Marygold & Co. Advisory Services, LLC, was
established to explore opportunities in the financial technology
sector. The company continues in the development stage as it works
toward introduction of a fintech mobile banking app.
https://marygoldandco.com/.
Marygold & Co. (UK) Limited, formed in the U.K. during
August 2021, operates through its recently acquired subsidiary,
Tiger Financial & Asset Management Limited (“Tiger”), a U.K.
based investment adviser. Tiger’s core business is managing
clients’ financial wealth across a diverse product range, including
cash, national savings, individual savings accounts, unit trusts,
insurance company products such as investment bonds and other
investment vehicles. http://www.tfam.co.uk/
About The Marygold Companies, Inc.
The Marygold Companies, Inc., which changed its name from
Concierge Technologies, Inc. in March 2022, was founded in 1996 and
repositioned as a global holding firm in 2015. The Company
currently has operating subsidiaries in financial services, food
manufacturing, printing, security systems and beauty products,
under the trade names USCF Investments, Tiger Financial & Asset
Management Limited, Gourmet Foods, Printstock Products, Brigadier
Security Systems and Original Sprout, respectively. Offices and
manufacturing operations are in the U.S., New Zealand, U.K., and
Canada. For more information, visit
www.themarygoldcompanies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of U.S. federal securities laws. Words such as
“expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements, including, but not
limited to, the launch of the Company’s fintech mobile banking app,
involve significant risks and uncertainties that could cause actual
results to differ materially from the expected results and,
consequently, should not be relied upon as predictions of future
events. These forward-looking statements, including the factors
disclosed in the Company’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on September 28, 2022, and
in the Company’s other filings with the Securities and Exchange
Commission, are not exclusive. Readers are cautioned not to place
undue reliance upon any forward-looking statements, which speak
only as of the date made. Except as required by law, the Company
disclaims any obligation to update or publicly announce any
revisions to any of the forward-looking statements contained in
this press release.
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
June 30, 2022
June 30, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
12,915,620
$
16,072,955
Accounts receivable, net
959,350
1,070,541
Accounts receivable - related parties
2,230,874
2,038,054
Inventories
2,200,742
1,951,792
Prepaid income tax and tax receivable
1,166,318
747,343
Investments, at fair value
5,065,931
1,828,926
Other current assets
699,547
399,524
Total current assets
25,238,382
24,109,135
Restricted cash
1,013,279
13,989
Property, plant and equipment, net
1,391,894
1,573,445
Operating lease right-of-use asset
1,357,686
1,058,199
Goodwill
2,307,202
1,043,473
Intangible assets, net
2,708,896
2,341,803
Deferred tax assets, net - United
States
753,078
827,476
Other assets, long - term
540,160
540,160
Total assets
$
35,310,577
$
31,507,680
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
$
2,805,790
$
3,862,874
Expense waivers – related parties
70,199
69,684
Operating lease liabilities, current
portion
660,957
513,071
Purchase consideration payable
1,237,207
-
Notes payable - related parties
-
603,500
Loans-property and equipment, current
portion
33,496
15,094
Total current liabilities
4,807,649
5,064,223
LONG-TERM LIABILITIES
Loans-property and equipment, net of
current portion
459,178
379,804
Operating lease liabilities, net of
current portion
743,923
607,560
Deferred tax liabilities, net -
foreign
260,553
169,429
Total long-term liabilities
1,463,654
1,156,793
Total liabilities
6,271,303
6,221,016
STOCKHOLDERS' EQUITY
Convertible preferred stock, $0.001 par
value; 50,000,000 shares authorized
Series B: 49,360 shares issued and
outstanding at June 30, 2022 and at June 30, 2021
49
49
Common stock, $0.001 par value;
900,000,000 shares authorized; 39,383,459 shares issued and
outstanding at June 30, 2022 and 37,485,959 at June 30, 2021
39,384
37,486
Additional paid-in capital
12,313,205
9,330,843
Accumulated other comprehensive (loss)
income
(234,790
)
142,581
Retained earnings
16,921,426
15,775,705
Total stockholders' equity
29,039,274
25,286,664
Total liabilities and stockholders'
equity
$
35,310,577
$
31,507,680
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
Year Ended
Year Ended
June 30, 2022
June 30, 2021
Net revenue
Fund management - related party
$
23,835,348
$
25,169,182
Food products
7,930,888
8,263,267
Security systems
2,533,098
2,715,487
Beauty products and other
3,529,789
3,756,512
Net revenue
37,829,123
39,904,448
Cost of revenue
9,194,783
9,290,616
Gross profit
28,634,340
30,613,832
Operating expense
Salaries and compensation
8,812,081
8,843,618
General and administrative expense
6,794,645
7,140,870
Fund operations
4,600,535
3,658,593
Marketing and advertising
2,985,659
2,952,295
Legal settlement
2,500,000
-
Depreciation and amortization
561,019
599,979
Total operating expenses
26,253,939
23,195,355
Income from operations
2,380,401
7,418,477
Other income (expense):
Interest and dividend income
35,357
28,823
Interest expense
(31,512
)
(40,375
)
Other (expense) income, net
(26,125
)
227,976
Total other (expense) income, net
(22,280
)
216,424
Income before income taxes
2,358,121
7,634,901
Provision of income taxes
(1,212,400
)
(1,785,458
)
Net income
$
1,145,721
$
5,849,443
Weighted average shares
Basic and diluted
39,034,611
38,473,159
Net income per share
Basic and diluted
$
0.03
$
0.15
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
For the years ended
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
1,145,721
$
5,849,443
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
561,019
599,979
Deferred taxes
51,689
(19,092
)
Bad debt expense
4,350
9,753
Inventory provision
10,509
65,021
Unrealized gain on investments
(28,474
)
(582
)
(Gain) loss on disposal of equipment
(17,455
)
18,813
Operating lease right of use asset -
non-cash lease cost
764,311
614,506
(Increase) decrease in operating
assets:
Accounts receivable, net
44,356
(306,596
)
Accounts receivable - related party
(192,820
)
572,863
Prepaid income taxes and tax
receivable
(431,005
)
114,083
Inventories
(379,905
)
(787,081
)
Other current assets
(287,750
)
223,590
Increase (decrease) in operating
liabilities:
Accounts payable and accrued expenses
(1,048,279
)
978,726
Operating lease liabilities
(777,082
)
(361,823
)
Expense waivers - related party
515
(352,207
)
Net cash (used in) provided by operating
activities
(580,300
)
7,219,396
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash paid for acquisition of business,
net
(508,851
)
(1,115,545
)
Purchase of property, plant and
equipment
(44,041
)
(77,721
)
Proceeds from sale of property, plant and
equipment
31,612
-
Proceeds from sale of investments
508,122
-
Purchase of investments
(3,712,250
)
(7,827
)
Net cash used in investing activities
(3,725,408
)
(1,201,093
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash received from sale of common stock,
net
2,984,260
-
Repayment of related party loans
(603,500
)
-
Repayment of property and equipment
loans
(41,884
)
(28,434
)
Net cash provided by (used in) financing
activities
2,338,876
(28,434
)
Effect of exchange rate change on cash,
cash equivalents and restricted cash
(191,213
)
271,033
NET (DECREASE) INCREASE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
(2,158,045
)
6,260,902
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING BALANCE
16,086,944
9,826,042
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, ENDING BALANCE
$
13,928,899
$
16,086,944
Cash and cash equivalents
$
12,915,620
$
16,072,955
Restricted cash
1,013,279
13,989
Total cash, cash equivalents and
restricted cash shown in statement of cash flows
$
13,928,899
$
16,086,944
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest paid
$
16,401
$
16,095
Income taxes paid, net
$
1,704,970
$
1,688,781
NON CASH INVESTING AND FINANCING
ACTIVITIES
Reclassification of business acquisition
deposit
$
-
$
122,111
Purchase consideration payable
$
1,237,207
$
-
Fair value of warrants of common stock
issued to underwriters
$
132,000
$
-
Acquisition of equipment through finance
lease liability
$
150,625
$
-
Establishment of operating right-of-use
assets through operating lease obligations
$
1,057,965
$
730,741
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220928006085/en/
Media and investors, for more Information, contact: Roger
S. Pondel PondelWilkinson Inc. 310-279-5965 rpondel@pondel.com
Contact the Company: David Neibert, Chief Operations Officer
949-429-5370 dneibert@themarygoldcompanies.com
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